Callaway Community Hospital Ass'n v. Missouri Department of Corrections

885 S.W.2d 740, 1994 Mo. App. LEXIS 1407
CourtMissouri Court of Appeals
DecidedAugust 30, 1994
DocketNo. WD 49160
StatusPublished
Cited by1 cases

This text of 885 S.W.2d 740 (Callaway Community Hospital Ass'n v. Missouri Department of Corrections) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Callaway Community Hospital Ass'n v. Missouri Department of Corrections, 885 S.W.2d 740, 1994 Mo. App. LEXIS 1407 (Mo. Ct. App. 1994).

Opinion

FENNER, Chief Judge.

Appellant, Callaway Community Hospital Association (Callaway), appeals the order of summary judgment entered by the Circuit Court of Cole County, Missouri, in favor of respondent, Missouri Department of Corrections (Department).

Pursuant to section 217.230, RSMo Supp. 1993, the Department is required to arrange for necessary health care services for inmates confined in its correctional facilities. Section 217.230, RSMo Supp.1993, provides as follows:

The director shall appoint physicians and other health care personnel and shall arrange for necessary health care services for offenders confined in correctional facilities through the establishment and maintenance of the sections of mental health services and medical services, maintenance of infirmaries, and the procurement of hospital and other outside health care services through contractual arrangements.

From 1987 through December 31, 1990, Callaway furnished hospital services to the Department pursuant to a written contract and written extensions thereto. The services were offered at a discounted rate. The contract expired on December 31, 1990. No written extension was tendered and no extension was agreed upon between January 1, 1991 and June 6, 1991. Callaway, however, continued to provide services to inmates at [742]*742the Missouri Department of Corrections from January 1, 1991 through June 6, 1991. Callaway alleged that it told the Department that until there was a new contract, Callaway would be . willing to provide services to the Department but that the charges for these services would be at the same rate charged to the public generally.

The dispute centers around money allegedly owed by the Department to Callaway for hospital services that Callaway furnished to the Department from January 1, 1991 through June 6,1991. The hospital bill allegedly totalled $1,110,604.73 and the Department paid $888,483.79. Thus, Callaway claims that the Department still owes $222,-120.94.

Callaway filed a petition in the Circuit Court of Cole County, Missouri, on February 18, 1992. Callaway filed its petition in three alternative counts: (1) quantum meruit; (2) action on account; and (3) breach of contract. In its petition, Callaway alleged that the Department has failed to pay Callaway the balance of $222,120.94 for the hospital services Callaway furnished from January 1, 1991 through June 6,1991. Callaway alleged that the parties entered into an agreement for the period of January 1, 1991 through June 6, 1991 whereby Callaway agreed to provide hospital services to the Department and the Department agreed to pay Callaway for the services at the rate charged by Calla-way to the public generally. Callaway asked the court to enter judgment in its favor for $222,120.94 plus interest.

In its answer to Callaway’s petition, the Department asserted, in part, the following defenses: (1) failure to state a cause of action, (2) the action is barred by the doctrine of sovereign immunity, (3) failure of consideration in that the amounts claimed to be owed to Callaway “are unreasonable and excessive from those amounts previously and currently charged [the Department] for hospital services provided by [Callaway],” (4) during the time period at issue, it “implicitly exercised its option and renewed the previous contract between the parties,” (5) an “implied contract” existed between the parties, and (6) the alleged agreement referred to by Calla-way in its petition is illegal because it violates the provisions of Chapter 34, RSMo. The Department asked the court to dismiss the case.

The court, by agreement of the parties, treated the Department’s Motion to Dismiss as a Motion for Summary Judgment, and considered the exhibits that Callaway had submitted with its Response to the Department’s Motion to Dismiss as suggestions in opposition to summary judgment. On February. 17, 1994, the court granted summary judgment in favor of the Department. This appeal followed.

On appeal, Callaway argues that the circuit court erred in granting summary judgment in favor of the Department because the Department did not have an undisputed right to judgment as a matter of law in that there existed “material facts [that] reveal[ed] genuine issues for trial, and, in fact, support recovery by [Callaway] against [the Department].”

Callaway’s argument on appeal focuses on the emergency condition exception to the bidding requirements set forth in Chapter 34, RSMo. Callaway asserts that the Department obtained hospital services from Callaway and Callaway provided such services in a lawful manner pursuant to Purchasing Directive 71 (PD71) as an “emergency procurement.” Callaway cites to section 34.100, RSMo 1986, and PD71-4000 in support of its argument that the Department directly purchased health care services from Callaway, without bidding, to satisfy an emergency condition.

As stated above, the court, by agreement of the parties, treated the Department’s Motion to Dismiss as a Motion for Summary Judgment and considered exhibits that Calla-way had submitted with its Response to the Department’s Motion to Dismiss as suggestions in opposition to summary judgment.

When considering appeals from summary judgments, this court will review the record in the light most favorable to the party against whom judgment was entered. ITT Commercial Finance Corp. v. Mid-America Marine Supply Corp., 854 S.W.2d 371, 376 (Mo. banc 1993). Facts set forth by affidavit or otherwise in support of a party’s [743]*743motion are taken as true unless contradicted by the nonmoving party’s response to the summary judgment motion. Id. The non-movant is accorded the benefit of all reasonable inferences from the record. Id.

The propriety of summary judgment is purely an issue of law, and our review is essentially de novo. Id. The mov-ant bears the burden of establishing a right to judgment as a matter of law and the absence of any genuine issue as to any material fact required to support that right to judgment. Id. at 378; Rule 74.04(c). Thus, the burden on a summary judgment movant is to show a right to judgment flowing from facts about which there is no genuine dispute. ITT Commercial Finance Corp., 854 S.W.2d at 378.

When a motion for summary judgment is made, the adverse party may not rest upon the mere allegations or denials of his pleadings, but his response, by affidavit or as otherwise supported by rule, must set forth the specific facts showing that a genuine issue of fact does exist, not that it might exist. Cavin v. Kasser, 820 S.W.2d 647, 649 (Mo.App.1991).

Chapter 34, RSMo, also known as the State Purchasing Law, sets forth bidding requirements for state purchases. Section 34.150, RSMo 1986, provides, in pertinent part, as follows:

Whenever any department or agency of the state government shall purchase or contract for any supplies, materials, equipment or contractual services contrary to the provisions of this chapter or the rules and regulations made thereunder, such order or contract shall be void and of no effect (emphasis added).

Section 34.100, RSMo 1986, provides as follows:

1.

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885 S.W.2d 740, 1994 Mo. App. LEXIS 1407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/callaway-community-hospital-assn-v-missouri-department-of-corrections-moctapp-1994.